1758.HK WACC - Weighted Average Cost of Capital

The WACC of Bojun Education Company Ltd (1758.HK) is 13.1%.

The Cost of Equity of Bojun Education Company Ltd (1758.HK) is 9.40%.

The Cost of Debt of Bojun Education Company Ltd (1758.HK) is 14.40%.

	Range	Selected
Cost of equity	8.00% - 10.80%	9.40%
Tax rate	5.20% - 7.10%	6.15%
Cost of debt	5.90% - 22.90%	14.40%
WACC	5.8% - 20.3%	13.1%

WACC

1758.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.85	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.80%

Tax rate	5.20%	7.10%
Debt/Equity ratio	10.45	10.45
Cost of debt	5.90%	22.90%

After-tax WACC	5.8%	20.3%


Selected WACC	13.1%

1758.HK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 1758.HK:

cost_of_equity (9.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.85) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.